Financing for equity in primary and secondary education
1. Education resources to subnational governments
2. Education resources to schools
3. Education resources to students and families
4. Social policies and family support programmes
Introduction
In New Zealand, responsibility for basic education is shared between central and local authorities. The central government, primarily through the Ministry of Education, sets national policies, provides funding, and establishes operational and curricular guidelines. Schools themselves are self-governing, managed by local boards of trustees composed of elected parent and community representatives, the school principal, and staff members. These boards oversee the financial governance of their schools and determine how operational funding is allocated, while complying with national administration guidelines and relevant legislative and reporting requirements.
Funding for basic education is distributed directly from the central government to schools through three main channels: staffing entitlements, property funding, and operational funding. Staffing entitlements, also referred to as Teachers' Salaries, are calculated based on each school’s roll size, school type, year levels of the student population, and whether instruction is delivered in English or Māori medium. Property funding supports capital works and special projects, while operational funding covers day-to-day running costs, enabling schools to manage their resources according to local priorities.
1. Education resources to subnational governments
New Zealand’s funding system is centralised, with resources distributed directly from the national government to schools.
2. Education resources to schools
Operational Funding (Bulk Grant)
Operational funding, also called the Bulk Grant, covers the running costs of schools and is primarily determined by the number of students and other contextual factors. The Ministry of Education divides this funding into multiple components, including a base allocation for all schools and targeted funding to address specific needs.
A key feature of the funding model is the Equity Index (EQI), introduced in 2023 to replace the previous decile system introduced in 1995. The EQI measures the socio-economic barriers students face, using data on parental and child socio-economic status, national background, and student transience. Schools with higher EQI values receive more per-student funding, which is disbursed quarterly to their bank accounts. The EQI uses de-identified data from Statistics NZ, incorporating 37 variables grouped into parental and child socio-economic indicators, national background, and transience, and places schools on a numerical scale from 344 to 569, with higher numbers indicating greater funding.
Additional operational funding supports schools with moderate learning or behavioural needs through the Support for Inclusion Funding, isolated schools, small primary schools, and schools offering Māori language or Pacific bilingual programmes. These allocations ensure that funding reflects both the size and specific needs of each school, promoting equity and access across New Zealand’s diverse educational landscape.
3. Education resources to students and families
The Ongoing Resourcing Scheme (ORS) in New Zealand provides targeted funding for students with severe learning difficulties or disabilities, including challenges in hearing, vision, physical abilities, language, and social communication. Support is allocated according to need, with high and very high needs categories. It covers specialist services such as therapists, psychologists, and learning support advisors, additional teacher time, contributions for teacher aides, and consumables to assist learning. Applications, typically submitted by educators in consultation with families and specialists, are assessed by ORS verifiers against established criteria. Once approved, funding remains with the student from age 4 years and 8 months until they turn 21, ensuring consistent, tailored support throughout their schooling.
4. Social policies and family support programmes
School and Year Start-up Payment
The School and Year Start-up Payment in New Zealand, administered by the Ministry of Social Development through Work and Income, provides financial support to caregivers receiving the Unsupported Child’s Benefit or Orphan’s Benefit to help cover pre-school and school-related costs such as fees, uniforms, and stationery at the start of the year. Unlike other forms of support that must be repaid, this payment is tax-free and does not need to be reimbursed, with applications made annually through the Work and Income website.
5. School meal programmes
Ka Ora, Ka Ako (Healthy School Lunches)
Ka Ora, Ka Ako (Healthy School Lunches) is New Zealand’s national school meal programme, designed to reduce food insecurity among vulnerable students by providing a daily nutritious lunch. Administered by the Ministry of Education, it targets approximately a quarter of students in schools identified as most in need, based on the Equity Index. Schools can choose from three main delivery models: meals prepared by external providers; in-house preparation using government-supplied ingredients; or partnerships with local iwi or hapū, who prepare and deliver lunches under formal agreements with the Ministry. Planned adjustments for 2026 focus on improving cost efficiency, maintaining nutrition standards, and extending provision to up to 10,000 children through the Early Learning Food programme.
This profile was reviewed by Ella Fraser, Policy Analyst, and Arden David-Perrot, Senior Policy Analyst, of the Ministry of Education of New Zealand.
